Centre Likely To Hike FDI Limit In Pension Sector To 74 Per Cent; Bill May Be Tabled In Next Parliament Session

Centre Likely To Hike FDI Limit  In Pension Sector To 74 Per Cent; Bill May Be Tabled In Next Parliament SessionPrime Minister Narendra Modi with Finance Minister Nirmala Sitharaman.

In a bid to attract investments into India, the Government is likely to increase the foreign direct investment (FDI) limit in the pension sector to 74 per cent from the present limit of 49 per cent, reports Economic Times.

The Government is expected to table a Bill in this respect in the upcoming monsoon or winter session of the Parliament. The bill would amend the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 enable allow FDI in pension funds to the extent of 74 per cent.

The said bill will also likely enable the separation of the National Pension System (NPS) Trust from the PFRDA, moving its powers, functions and duties to a charitable trust or under the Companies Act.

Meanwhile, it should be noted that the Government had recently raised the FDI limit for the investments in the insurance sector as well from 49 per cent to 74 per cent. Before this, the Government had amended The Insurance Act, 1938 in 2015. The said amendment has already enabled an FDI inflow of Rs 26,000 crore in the last five years.